Sensex-Slips-to-81,040,-Nifty-Holds-24,725

FMCG shines while IT, pharma, and metals face selling pressure

The Indian stock market opens cautiously on August 1, 2025. Both major indices, the Sensex and the Nifty 50, start the session in negative territory. The Sensex begins trading around 81,040 to 81,090 points, slipping by roughly 0.2% compared to the previous day’s close. Similarly, the Nifty 50 hovers near 24,720 to 24,730 points, also showing a small decline. 

This early weakness reflects the nervousness among investors, who are reacting to unfavorable global cues and renewed trade tensions. Gift Nifty futures, which indicate the market trend before the opening bell, signal the same caution by staying nearly 140 points below the last close.

Sector Performance and Market Mood

The market mood today is mixed, with some sectors showing resilience while others face strong selling pressure. FMCG and media stocks are the bright spots of the session, rising between 0.5% and 1.3% in early trade. Companies like Hindustan Unilever, Tata Consumer Products, Asian Paints, Hero MotoCorp, and Maruti Suzuki are among the top performers. Investors are finding comfort in these consumer-focused companies because their businesses tend to stay stable even when the market turns volatile.

On the other hand, sectors like pharmaceuticals, information technology, metals, oil and gas, public sector undertakings, and telecom are witnessing losses of around 0.5% to 1%. Stocks such as Dr. Reddy’s Laboratories, ONGC, Cipla, Tata Steel, and JSW Steel are leading the decline. These segments are more sensitive to global demand and trade policies, which makes them vulnerable to the current environment of uncertainty.

Global Trade Tensions Affect Sentiment

Global developments are playing a major role in shaping today’s trading session. The United States has reimposed a 25% tariff on Indian exports and announced additional duties on goods from other countries. This move has unsettled markets because it directly threatens the earnings of export-dependent industries. Sectors like pharmaceuticals, electronics, and textiles are likely to feel the immediate impact of these tariffs.

The fear of reduced exports is not the only concern. Tariffs also send shockwaves across global markets, prompting foreign investors to shift money away from riskier emerging markets like India. Some market participants believe that these tariffs are a bargaining tactic in ongoing trade negotiations rather than a permanent move. However, until there is clarity, this development adds a cloud of uncertainty to the trading environment.

Foreign and Domestic Investor Activity

Investor activity reflects the same nervousness that dominates market sentiment. Foreign institutional investors continue to sell Indian stocks, which puts consistent pressure on the indices. A combination of rising US interest rates and a stronger dollar is encouraging global investors to pull money out of emerging markets. This trend has been weighing on the market for several weeks and continues today.

Domestic institutional investors, on the other hand, are trying to provide some stability by selectively buying high-quality stocks. Their focus remains on large-cap companies and defensive sectors that are less affected by global fluctuations. However, domestic buying is not strong enough to fully offset the heavy foreign selling, keeping the overall market tone weak.

IPO Activity Shows Investor Interest

Despite the caution in the broader market, the primary market remains active. Shanti Gold International makes its stock market debut today and immediately captures attention. The stock opens around ₹229 on the BSE and ₹227.55 on the NSE, giving investors a 14 to 15 percent premium over the issue price of ₹199. This strong listing shows that while traders are hesitant in the secondary market, they are still willing to participate in new offerings that come with promising fundamentals.

The success of this IPO signals that investor appetite for new opportunities remains healthy, even in a cautious market. Companies with strong brand value and steady earnings potential continue to attract demand, which keeps the IPO market lively.

Corporate Earnings Influence Market Movements

Quarterly earnings announcements are adding to the market’s mixed performance. Ambuja Cements posts a net profit of ₹970 crore on record sales volumes, boosting confidence in the construction and cement sector. PB Fintech, the parent company of Policybazaar, reports a 41 percent rise in profit and 33 percent growth in revenue compared to the same quarter last year. This strong performance supports optimism in technology-driven financial services.

On the negative side, Sun Pharma sees its shares slip after reporting weaker-than-expected earnings. The stock faces additional pressure after a major brokerage firm downgrades it to a sell rating. Some information technology and metal stocks are also struggling due to concerns about slower global demand. These mixed results show that earnings season continues to create stock-specific opportunities, even when the overall market remains under pressure.

Technical Outlook of the Market

From a technical perspective, the Sensex shows immediate support in the 80,600 to 80,800 zone. As long as the index holds above this range, a potential recovery toward 81,900 to 82,200 points remains possible. On the Nifty 50, heavy resistance appears near the 25,000 mark, where call option activity is concentrated. The 24,700 level is acting as the first line of support because of strong put option interest. Traders are closely watching these levels to guide their short-term strategies, with any break on either side likely to trigger a sharper move.

Market Behavior in Context

The current session continues the pattern of volatility that has defined 2025. Earlier this year, the market experienced a sharp fall due to global trade tensions, rising interest rates, and heavy foreign fund outflows. A partial recovery in March brought some relief, but the market has not yet regained a steady upward trend. Today’s cautious trading reflects how sensitive investors remain to external factors like tariffs, currency movements, and geopolitical developments.

Despite the challenges, domestic economic fundamentals remain supportive in the medium term. However, the market will need a positive trigger, such as easing trade tensions or strong domestic growth data, to move decisively higher.

Market Outlook

The stock market today paints a picture of caution and selective optimism. Weakness in global markets, foreign investors selling, and the shadow of US tariffs weigh heavily on sentiment. At the same time, strong IPO listings and solid earnings from select companies provide pockets of strength.

In the short term, volatility is expected to continue as traders respond to foreign fund flows and global trade updates. Defensive sectors like FMCG and stable large-cap companies are likely to attract buying interest, while export-oriented and cyclical sectors may remain under pressure. For a broader recovery to take shape, clarity on international trade negotiations and a slowdown in foreign selling will be essential.